This is a sample comment letter to the CFPB in support of the proposed rule prohibiting the waiver of class actions in contracts for financial products and services, and requiring the reporting of information regarding the use of arbitration in the consumer financial context. We encourage you to use this resource to craft your own comment letter in support or you can simply sign on to ours.
When submitting a complaint, consumers have the option to share their experiences (good or bad) with consumer financial products or services such as mortgages, bank accounts, overdraft, credit cards and deferred interest and reward programs, prepaid and campus cards, payday and installment loans, bank deposit advance products, forced arbitration and prohibition of class actions, remittances, credit reporting agencies, debt collections, student loans, auto loans, and auto title loans. Let the CFPB know what challenges you are facing.
A majority of the bank customers (52 percent) who paid a debit card overdraft penalty fee in the last year, did not recall signing up for this service and were not aware that a fee was involved, according to a recent survey by the Pew Charitable Trusts.
Why all the confusion? Is it something the banks are doing?
Only 14.3% of customers at big banks had overdraft coverage in 2011 and 2012, according to the Consumer Financial Protection Bureau.
But for the minority of consumers who do opt in, overdraft fees can be enormously expensive. Around 8% of consumers paid overdraft fees at least 10 times per year, which cost them an average of $380 annually, the CFPB says.
The four organizations conducted 64 mystery shopping visits at 39 bank branches in Chicago, Durham, New York City, and Oakland, including Bank of America, BB&T, BMOHarris, Capital One, Chase, Citi, SunTrust, and Wells Fargo. In Chicago, mystery shoppers visited Bank of America, BMO Harris, Chase, and Citi.
Four organizations—California Reinvestment Coalition of Oakland, CA; New Economy Project of New York, NY; Reinvestment Partners of Durham, NC; and Woodstock Institute of Chicago, IL—conducted 64 mystery shopping visits at 39 bank branches in Chicago, Durham, New York City, and Oakland. The four largest banks by deposit size in each city or state (California) were selected, including Bank of America, BB&T, BMO Harris, Capital One, Citibank, JPMorgan Chase, SunTrust, Union Bank, and Wells Fargo.
The CFPB was established by the Dodd-Frank Wall Street Reform and Consumer Protection Act as the first federal financial regulator whose focus is protecting the rights of consumers.
No matter who you are—a credit card borrower, student borrower, homeowner, servicemember, or more—the CFPB is making major strides to ensure that you can safely do business with financial institutions.
The report makes it clear that overdraft products are one of the reasons that people do not participate in the mainstream financial system and often end up paying more for financial transactions at alternative, non-bank financial services providers. We know from the Federal Deposit Insurance Corporation (FDIC)’s 2011 survey that half of the over 10 million unbanked households in America were formerly banked.